The United Kingdom’s biggest real estate transaction of the year is in contract.
Singapore-based asset manager Sun Venture has agreed to pay Land Securities Group £552 million, or approximately $742 million, for the office complex at 1 and 2 New Ludgate in London, according to Mingtiandi.
Landsec, which developed the complex, announced the deal on Friday. It breaks down to around £1,416 (or $1,896) per square foot.
Japan’s Mizuho Bank signed a 20-year lease for 2 New Ludgate in 2014, while 1 New Ludgate is leased to law firm Ropes & Gray and the Commonwealth Bank of Australia.
The complex was valued at £546.4 million as of Mar. 31 and generates £23.7 million in rental income each year.
There is some concern about office oversupply in London in the coming years, as overbuilding was already an issue before the coronavirus pandemic killed demand for space.
It’s Sun Venture’s second deal this year in the UK. In July the firm purchased One New Oxford Street from Nuveen Real Estate for £174 million. That was its first deal outside Singapore.
CBRE represented Landsec in the deal, while JLL repped Sun Venture. [Mingtiandi] — Dennis Lynch
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